Groupon Case

Groupon is on of the largest companies that are involved in the in the local daily Internet coupon market. Their model is dependent upon networking with businesses in particular locations to create coupon deals that generate revenue. This model enables local-business exposure to Groupon’s large customer base and focuses on targeted advertising based on location. Groupon is the fastst growing and biggest daily deal, social group, buying site (Beukes, 2012). Groupon ventured beyond its domestic market almost from the start by employing an aggressive growth and globalization strategy that is generated largely by mergers and acquisitions.
Since the company began in 2008, Groupon has acquired 28 companies across the USA and globally (Beukes, 2012).

The necessary structural factors range from the quality of the electrical supply, to the number of telephone lines available for data transmissions, and finally, the amount of mobile phone subscriptions.
Groupon has acquired thirteen imitator companies in foreign markets (Schwab, 2011). In some cases, these imitators have been used to allow Groupon to expand their international reach into nearby countries. For the sake of this report’s focus, we will limit the research data to the Asian region with a primary focus on China while comparing to that of a Stage 3, highly innovative country, such as the US or Singapore, as a global benchmark. The following table illustrates data gathered that takes into account structural considerations affecting the global competiveness of the countries in which Groupon

With such diversity, there is not a single consumer profile and analysts have postulated that companies should be flexible and inventive, but still analyze how their company would fit in the defined market. The essential tasks that an MNE needs to operate and grow successfully include taking a market-based approach, understanding that the expansion procedures in China take time and will be costly, and building a strong local team. Due to the fact that Groupon will be operating in a country with a deeply rooted culture, it is valuable to develop insight into China’s business culture and social etiquette to avoid misunderstandings that could cause delays that may discourage business negotiations and harm working business